Tag: Capital expenditure

When carrying out extensive repairs to maintain their premises a farmer may assume that, without question, these repairs will be offset against the business income received thus reducing the tax bill for the applicable accounting period. HM Revenue and Customs however, may adopt an entirely different view. Repairs are tax deductible and can be claimed … Continue reading Are Your Farm Repairs Tax Deductible?

The ever present, ever contentious issue of capital expenditure versus revenue expenditure has made another appearance in a recent tax tribunal. The case of Hopegear Properties Ltd v HMRC follows on from the Cairnsmill Caravan Park Case in that we see another victory for the tax payer surrounding the issue of allowable repair expenditure. HMRC … Continue reading The Battle Rages On…

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Trying to establish whether a repair is an allowable trading expense or a capital deduction can be a minefield. It is a complex and grey area and causes many problems. HMRC state that a repair means the restoration of an asset by replacing subsidiary parts of the whole asset. If there is a significant improvement … Continue reading Repair – capital or revenue expense?

HMRC has brought yet another claim for repairs as revenue expenditure before the First Tier Tax Tribunal. The claimant, a limited company, traded from premises on an industrial estate. It claimed as a deduction in its profit and loss account expenses for: the diversion of telecommunications cables relaying and resurfacing a carriageway repairs to the … Continue reading Repairs – Capital or revenue expenditure?